The difference between the gross public debt and the net public debt is
A) the sum of all previously accumulated government budget deficits and surpluses.
B) the sum of all previously issued U.S. government securities that have been purchased by foreign residents.
C) all private-sector borrowing from private sources.
D) borrowing of government agencies from other government agencies within the nation.

Question

Quizplus · Accepted Answer

Gross public debt refers to the total amount of money owed by the government, while net public debt subtracts the amount that the government owes to itself through borrowing from different agencies. Therefore, the difference between gross public debt and net public debt would be the amount of borrowing that the government agencies have made from each other within the nation.

The Difference Between the Gross Public Debt and the Net